U.S. strikes criminal scam hubs in Southeast Asia with sweeping sanctions

By Kazeem Ugbodaga

The United States has announced sweeping sanctions against criminal networks in Southeast Asia accused of running large-scale online scams that defrauded Americans of at least $10 billion in 2024.

In a statement issued on Monday, U.S. Secretary of State Marco Rubio said the measures target key players in scam hubs operating in Burma and Cambodia, where workers are reportedly subjected to forced labour and abuse while being coerced into carrying out cyber-enabled fraud.

The Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned nine entities tied to operations in Shwe Kokko, Burma, a notorious scam centre protected by the already blacklisted Karen National Army (KNA) – a transnational criminal organisation.

According to U.S. officials, the KNA has long facilitated fraudulent online schemes that prey on American citizens while exploiting vulnerable workers under inhumane conditions.

In addition, OFAC imposed sanctions on four individuals and six entities accused of running forced-labour compounds in Cambodia.

These operations are said to orchestrate deceptive virtual currency investment scams targeting victims in the United States, Europe, China, and other regions.

Washington described the sanctions as part of a broader effort to protect Americans from the “pervasive threat” of online fraud, while also disrupting the financial and logistical networks that enable transnational organised crime.

Officials stressed that the scam centres are not only defrauding unsuspecting victims globally but also perpetuating human rights abuses, including physical and sexual violence against trafficked workers.

The sanctions were issued under multiple U.S. executive orders, including E.O. 13581 and E.O. 13863, which authorise measures against significant transnational criminal organisations.

The Department of State reaffirmed its commitment to working with international partners to dismantle such networks and hold perpetrators accountable.

“These actions send a clear message,” the statement read.

“The United States will continue to defend its citizens against online fraud, disrupt criminal syndicates, and stand against the exploitation of vulnerable communities in Southeast Asia.”